Plymouth Meeting and Willow Grove Malls Owner PREIT Has ‘Substantial Doubt’ Over Its Ability to Stay in Business Over Next Year

By
preit mall
Image via PREIT.

Pennsylvania Real Estate Investment Trust (PREIT), the owner of Plymouth Meeting Mall and Willow Grove Park Mall, has “substantial doubt” about being able to remain in business over the next year, according to the annual report the company filed with the Securities and Exchange Commission, writes Natalie Kostelni for the Philadelphia Business Journal.

PREIT made this conclusion after evaluating its current financial condition and the funds it has available, along with future cash flows and debt payments coming due.

The Philadelphia owner of regional malls is weighed down by $1.2 billion in debt with loan maturities on the horizon, most notably an FDP Loan with a $194.6 million balance due January 2023.

Company executives are working to extend the loan backed by Fashion District Philadelphia. However, PREIT has admitted in its annual report that it did not meet some covenants of the loan.

This “triggered the lender to sweep cash from the property,” wrote PREIT, but added that “this is not an event of default.”

PREIT is hoping a sale of some of its properties will bring a reversal of fortunes, including the sale of Exton Square Mall, announced this week.

Read more about the mall owner’s dilemma in the Philadelphia Business Journal.

Advertisement